What are the most promising conduits for foreign knowledge inflows? Innovation networks in the Chinese pharmaceutica industry

Abstract

We study innovation networks in emerging markets, where foreign actors have been identified as key sources of knowledge spillovers as well as progenitors of industry clusters. Focusing on connectivity as a channel for international knowledge sourcing, we widen our lens beyond multinational enterprises (MNEs) to include critical innovative actors such as research institutions (i.e. universities and research centers). We examine the geographic dispersion of co-inventor networks generated by US patents associated with the Chinese pharmaceutical industry. Previous research has highlighted the role of organizationally driven MNE networks as enablers of foreign knowledge inflows to less developed countries. However, our results emphasize the critical role of individually motivated networks arising from advanced economy research institutions in connecting China to global knowledge networks.